The effects of adopting digital technologies on Small Micro and Medium Enterprises (SMMEs) growth: A case of SMMEs in clothing retail sector operating in Tshwane

Abstract

The research examines how adopting digital tools affects Small Micro and Medium Enterprises (SMMEs) growth in the clothing retail sector. This study examines the integration of digital technology in the operations of SMMES and its impact on three key indicators of business growth: competitive advantage, financial performance, and customer satisfaction. Many SMMEs experience challenges with growing into successful businesses, yet they are seen as solutions to several problems, which include poverty, unemployment and development. Conducting this study was imperative to assess the extent to which adopting digital technology promotes SMME growth. The main aim of study is to determine the relationship between the adoption of digital technologies and the growth of SMMEs operating in the clothing retail industry in Tshwane. The current study employed a quantitative cross-sectional survey research design. Data was collected from a sample of 384 respondents representing SMMEs engaged in the clothing retail business in Tshwane. The sample was selected using the convenience sampling technique. The study found that SMMEs adopting digital technologies have a significant positive relationship with competitive advantages, financial performance and customer satisfaction. Managers and practitioners who want to promote business growth by improving competitive advantage, financial performance, and customer satisfaction should consider investing in adopting digital technology. The research adds empirical evidence demonstrating how digital technologies can be leveraged to promote SMMEs growth in emerging economies like South Africa.